The quest for budget cuts could endanger the $7,500 federal electric vehicle tax credit, but it's still available.

A House Republican bill introduced this week would do away with tax credits that had encouraged Americans to buy electric vehicles and automakers to invest in new factories.

The One Big Beautiful Bill, which has already passed through the Republican-led House of Representatives, would eliminate the $7,500 federal EV tax credit at the end of the year. The credit would be terminated for "clean vehicles" whose manufacturers sell more than 200,000 units in the U.S. per year.

WASHINGTON (AP) — The multitrillion-dollar tax breaks package passed by House Republicans early Thursday would gut clean energy tax credits that Democrats approved three years ago while supporting increased mining, drilling and other traditional energy production.

The plan, which is still pending in the House, would eliminate many tax incentives for clean energy programs after this year.

Tax bill also proposes completely eliminating the Obama administration's federal electric vehicle tax incentive. Eliminating the EV tax credit could make some of the most popular electric cars ...

On May 12, Republicans in the House of Representatives started to make the first moves toward getting rid of the EV tax credit as well as other efficiency-related rules. Related: Electric Cars ...

Lastly, there’s the commercial clean-vehicle credit—45W—which became law through the 2022 Inflation Reduction Act (IRA) and was designed to hand $7,500 per vehicle to businesses that buy EVs for their fleets. Through a wrinkle known as the “leasing loophole,” this sleepy-sounding policy has kicked off an epic EV-leasing boom .